Trump and Trudeau agree on a revised NAFTA deal

The agreement came just hours before a deadline set by the Trump administration, will pave the way for a vote in Congress to approve the deal after more than a year of negotiations among the US, Canada, and Mexico over the trilateral agreement.

Trump announced that the U.S. would impose a 25% tariff on imports of Canadian steel and a 10% tariff on aluminum in June, which in turn prompted Canada to respond with retaliatory tariffs on a slew of U.S. products in July.

Earlier Canada's Ambassador to the U.S., David McNaughton, had said in Ottowa, "Lots of progress, but we're not there yet".

"Everybody's negotiating in good faith right now as we speak".

Canadian Prime Minister Justin Trudeau said that it was a "good day for Canada" when leaving his office on Sunday.

Despite the fact it's one of Trump's favourite talking points, the politically sensitive question of greater US access to Canada's dairy market is also no longer a hurdle, say sources familiar with the talks.

It took more than a year of negotiations and a final flurry of six weeks of intense negotiations between U.S. and Canadian representatives to reach the United States-Mexico-Canada Agreement, which will govern nearly $1 trillion of trade between the nations. Companies and business groups, including the US Chamber of Commerce, have repeatedly called on Trump to ensure Canada remains part of the pact, which has become critical for industries across North America, including automakers, agriculture, and manufacturers.

Canada has made some concessions, including removing help for its dairy farmers, in return for protections for its vehicle industry.

The three countries reached an agreement to replace the 24-year-old North American Free Trade Agreement, according to a joint statement from U.S. Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland on Sunday.

USA business groups oppose turning NAFTA into a bilateral deal because the three nations' economies have become closely intertwined since the original pact came into force in 1994.

Trump has approved the deal with Canada, a source familiar with the decision said.

Canada will open its dairy market further to U.S. producers, and Washington left unchanged the dispute settlement provisions which Ottawa demanded.

The flags of Canada, Mexico and the United States are seen on a lectern before a joint news conference on the closing of the seventh round of NAFTA talks in Mexico City, Mexico, March 5, 2018. "So it's either going to be the text goes in with Mexico and the US, or the text goes in with all three countries".

"We agreed to that", Lopez Obrador told reporters in Mexico City.

More than two-thirds of Canadian exports go to the United States, equivalent to 20 percent of its Gross Domestic Product, while Canada is the largest export market for the United States.

At an investment conference hosted by TD Asset Management in mid-September, Mr. McKenna argued that Canada must stand its ground on the Chapter 19 dispute resolution mechanism.

This news was provided by sources within the Canadian and USA governments.

Even Trudeau has been pulled into the fray: on what's usually a personal day for the prime minister, his itinerary said he'd be spending Sunday in "private meetings" and he was seen entering his office early Sunday evening. "It's a great win for the president and a validation of his strategy in the area of global trade", said one senior US official. Then it's likely to be taken up in Congress next year. That is more than the 2 million units now exported.

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